electronic commerce

BCOM III YEAR
ELECTRONIC COMMERCE
UNIT 1
1.1. E-Business and E-Commerce:
1.1.1. Introduction
1.1.2. Potential Benefits
1.1.3. Limitations
1.1.4. Classification of E-Commerce
1.1.5. Impact of E-Commerce on Business Models
1.2. E-Commerce pplications
1.2.1. Entertainment
1.2.2. E-Mar!etin"
1.2.3. E-d#ertisin"
1.2.4. $earc% En"ines
1.2.5. E-Ban!in"
1.2.&. Mo'ile Commerce
1.2.(. )nline *radin"
1.2.+. E-Learnin"
1.2.,. E-$%oppin"
1.1.1. Introduction
Electronic Commerce – Definition
*%e use of electronic transmission mediums -telecommunications. to en"a"e in t%e
e/c%an"e0 includin" 'u1in" and sellin"0 of products and ser#ices re2uirin"
transportation0 eit%er p%1sicall1 or di"itall10 from location to location is defined as
Electronic Commerce.
*%e Internet and t%e 333 pro#ide t%e ena'lin" mec%anisms to foster t%e "ro4t% of
electronic commerce.
Electronic Business – Definition
*%e term electronic 'usiness also includes t%e e/c%an"e of information not directl1
related to t%e actual 'u1in" and sellin" of "oods. Increasin"l10 'usinesses are usin"
electronic mec%anisms to distri'ute information and pro#ide customer support. *%ese
acti#ities are not 5commerce6 acti#ities7 t%e1 are 5'usiness6 acti#ities. *%us term
Electronic Business is 'roader and ma1 e#entuall1 replace t%e term electronic
commerce.
1.1.. !otenti"l #enefits of Electronic Commerce
In order for 'usinesses to in#est resources to en"a"e in electronic commerce0 t%e
'enefits must e/ceed t%e costs.
*%e 'enefits t%at 'usinesses potentiall1 "ain from en"a"in" in electronic commerce
are:
- Internet and 4e'-'ased electronic commerce is more afforda'le t%an traditional
E8I.
- Internet and 4e'-'ased electronic commerce allo4s more 'usiness partners to 'e
reac%ed t%an 4it% traditional E8I.
- Internet and 4e'-'ased electronic commerce reac% more "eo"rap%icall1 dispersed
customer 'ase.
- Procurement processin" costs can 'e lo4ered.
- 9eductions in in#entories.
- Lo4er c1cle times.
- Better customer ser#ice.
- Lo4er sales and mar!etin" costs.
*%e first t%ree 'enefits are relati#e 'enefits of Internet and 4e'-'ased electronic
commerce o#er traditional E8I* met%ods. *%e cost and installation of E8I s1stems is
"enerall1 2uite %i"%0 and it %as t1picall1 onl1 'een 'eneficial to lar"er firms t%at %a#e
enou"% sales #olume to :ustif1 t%e costs of de#elopin" t%eir o4n net4or!s or
su'scri'in" to a #alue-added net4or!. ;P< -;alue dded <et4or!. is a ser#ice to
4%ic% a firm can su'scri'e. Because of t%e lo4 cost of connectin" to t%e Internet0
medium and small 'usinesses can no4 afford t%e connection cost. *%e Internet offers
a "reater c%oice of "lo'al partners 4it% 4%ic% to conduct electronic commerce.
Procurement costs can 'e lo4ered '1 traditional E8I s1stems '1 consolidatin"
purc%ases0 de#elopin" relations%ips 4it% !e1 suppliers0 ne"otiatin" #olume discounts0
and "reater inte"ration of t%e manufacturin" process. 8ata transmission costs can 'e
lo4ered. )ptions for partnerin" 4it% ot%er firms increase. *%e cost of t%e items
purc%ased can also 'e lo4ered due to t%e a'ilit1 to see! out and ne"otiate 4it% a
"reater num'er of suppliers.
reduction in in#entor1 is desira'le 'ecause of t%e associated reductions in
stora"e0 %andlin"0 insurance0 and administrati#e costs. Electronic commerce can %elp
firms to more optimall1 order t%e in#entories '1 electronicall1 lin!in" suppliers and
purc%asers to"et%er and allo4in" t%em to s%are updated production forecasts and
pro:ected in#entor1 le#els in order to allo4 'ot% parties to colla'orati#el1 5fin-tune6
t%eir production and deli#er1 sc%edules. Businesses can also use t%e Internet to
5unload6 un4anted in#entor1 or sell e/cess capacit1 #er1 2uic!l1 and 4it% e/tremel1
lo4 mar!etin" costs.
*%e production c1cle time is t%e time it ta!es a 'usiness to 'uild a product
'e"innin" 4it% t%e desi"n p%ase and endin" 4it% t%e completed product. Internet
electronic commerce is ena'lin" t%e reduction of t%e c1cle time '1 allo4in" en"ineers
and production teams to electronicall1 retrie#e product specifications0 2uantit10 and
pricin" information. 8urin" t%e product=ser#ice fulfilment c1cle0 customers can
electronicall1 c%ec! on t%e status of t%e order. $upport ser#ices for customers are also
en%anced '1 electronic ser#ices0 suc% as electronic notification of returned items and
t%e a'ilit1 to do4nload and print t%e necessar1 documentation and s%ippin" la'els to
return an item for ser#icin".
Businesses are not t%e onl1 'enefactors of Internet electronic commerce7
consumers ma1 also reap 'enefits from usin" t%e Internet. $ome 'enefits t%at
consumers ma1 e/pect to recei#e are:
- Increased c%oice of #endors and products
- Con#enience from s%oppin" at %ome or office
- >reater amounts of information t%at can 'e accessed on demand
- More competiti#e prices and increased price comparison capa'ilities
- >reater customi?ation in t%e deli#er1 of ser#ices.
1.1.$. Limit"tions of Electronic Commerce.
*%e limitations of E-Commerce can 'e "rouped into
1. *ec%nical
2. <on-*ec%nical
*ec%nical limitations of E-Commerce are
1. *%ere is a lac! of s1stem securit10 relia'ilit10 standards and some communication
protocols.
2. *%ere is insufficient telecommunication 'and4idt%.
3. $oft4are de#elopment tools are c%an"in" rapidl1.
4. It is difficult to inte"rate t%e internet and soft4are 4it% some e/istin" application
data 'ases.
5. $ome electronic commerce soft4are mi"%t not 'e fit 4it%out some net4or!. It ma1
'e incompati'le 4it% some operatin" s1stems or ot%er components.
NON%TEC&NICAL LIMITATION'(
1. Cost and @ustification: - *%e cost of de#elopin" E-Commerce in %ouse is #er1
costl1 and mista!es made due to lac! of e/perience ma1 result in dela1s.
2. $ecurit1$ <8 Pri#ac1: - *%ese issues are especiall1 important in t%e B2C area0
especiall1 t%e securit1 issues 4%ic% are pri#ac1 measures t%at are constantl1
impro#ed. Industr1 %as a #er1 lon" and difficult tas! of con#incin" customers t%at
online transactions are secured.
3. Lac! of trust and user resistance: - Customers do not trust on un!no4n faceless
sellers0 paperless transactions and electronic mone1.
1.1.). Cl"ssific"tions of Electronic Commerce
*%ere are si/ t1pes of E-Commerce:
1. BA$I<E$$ - *) - BA$I<E$$ -B2B.: It includes t%e I)$ transactions and
electronic
mar!et transactions 'et4een or"ani?ations.
B I)$ *ransactions mean Inter )r"ani?ational Information $1stems refers to flo4 of
standard transaction information 'et4een 'usiness partners0 suc% as placin" orders0
'uildin" or pa1in".
2. BA$I<E$$ *) CA$*)ME9$ -B2C.: *%ese are retail transactions 4it% indi#idual
s%oppers.
3. CA$*)ME9 *) CA$*)ME9 -C2C.: In t%is transaction customer sells directl1 to
Customers. E/ample : sellin" residential properties0 cars0 etc.0
4. <)< BA$I<E$$ E-C)MME9CE: n increased num'er of non-'usiness
institutions suc% as academic institutions0 not for profit institutions reli"ious0
or"ani?ations0 social or"ani?ational acti#ities.
5. CA$*)ME9 *) BA$I<E$$ -C2B.: *%is cate"or1 includes indi#iduals 4%o sell
products are ser#ices to or"ani?ations.
&.I<*9 BA$I<E$$ E-C)MME9CE: *%is cate"or1 includes all internal
or"ani?ational acti#ities0 usuall1 preformed on intranets0 t%at in#ol#es e/c%an"e of
"oods0 ser#ices are information.
1.1.*. Im+"ct of electronic commerce on #usiness models
Electronic commerce is forcin" 'usinesses to ret%in! t%eir traditional 'usiness
models. Electronic commerce is not :ust a tec%nolo"10 it is a 4a1 of conductin"
'usiness t%at %as t%e potential to impact e#er1 aspect of t%e firmCs #alue c%ain.
Implementin" full scale0 inno#ati#e applications of electronic commerce re2uires
mana"ement teams to #ie4 t%e mar!etplace 'e1ond t%e t1pical p%1sical 'oundaries. If
electronic commerce applications are not placed in t%e proper 'usiness and t%e
strate"1 ali"ned 4it% t%e 'usiness o#erall 'usiness strate"10 t%en t%e electronic
commerce application is li!el1 to fail.
O,er"ll #usiness "nd E%commerce -o"l con-ruence
Electronic commerce strate"ies need to 'e formulated so t%at t%e1 %elp a
'usiness ac%ie#e its o#erall 'usiness "oals. En#ironmental c%an"es ma1 cause a
'usiness to ret%in! or ad:ust its missions and "oals0 suc% as t%e entrance of 5ne46
competitors into t%e mar!etplace. *%ese 5ne46 competitors ma1 arise from pre#iousl1
un!no4n 'usinesses0 un!no4n per%aps 'ecause t%e1 are located in forei"n countries.
*%ese 5ne46 competitors ma1 launc% a 4e'-'ased commerce site and %a#e a ne4l1
found a'ilit1 to cost-effecti#el1 dra4 customers a4a1 from t%e 'usiness.
En#ironmental En#ironmental
C%an"es C%an"es
Business and Electronic Commerce >oal Con"ruence
)nce t%e corporate mission and "oals are set0 t%en t%e information s1stems
and tec%nolo"1 "roupCs mission can 'e set to %elp accomplis% t%at mission.
T.e im+"ct of electronic commerce on t.e ,"lue c."in
*%e traditional #ie4 of t%e #alue c%ain is no lon"er ric% enou"% to encompass
t%e true relations%ips underl1in" t%e flo4s of information 'et4een a firm0 its
customers0 and its suppliers. *%e traditional #alue c%ain t1picall1 depicts t%e
information s1stem data as flo4in" se2uentiall1 t%rou"% t%e processes 4it%
input=outputs to t%e supplier at t%e 'ac!-end sta"e and to t%e customer at t%e customer
at t%e front-end sta"e. In realit10 firms en"a"in" in electronic commerce ma1 s%are
information 4it% t%eir customers and suppliers at man1 sta"es of t%e #alue c%ain.
Information
System
CUSTOM
ER
Sales and
servic
e
Outbound
Corporate
Mission
Information Systems &
Technoloy Mission
!eb-based E-Commerce
Mission
!eb-based E-
Commerce "lan
Customer )riented ;alue C%ain
*%e fi"ure a'o#e depicts a ne4 #ie4 of t%e #alue c%ain 4it% t%e customer set
as t%e centre of focus to a firm. *%e firmCs information s1stem is t%e 5"lue6 t%at lin!s
all p%ases of its processes to"et%er. *%is customer-oriented #alue c%ain ena'les t%e
customer to access t%e firmCs -t%e supplierCs. information s1stem at #irtuall1 e#er1
p%ase in order to assess t%e pro"ress of t%e order. customer ma1 lin! to t%e firmCs
in#entor1 data suc% as price0 2uantit10 and a#aila'ilit10 prior to enterin" into a sales
contract. *%e actual sales ma1 'e placed electronicall1 and a promised or e/pected
s%ippin" data "i#en '1 t%e supplierCs information s1stem to t%e customer. )nce t%e
order is placed0 t%e customer ma1 'e a'le to c%ec! t%e status of t%e order=ser#ice
placed.
*%e Internet is ena'lin" companies to full1 inte"rate t%eir suppl1 c%ain0 and
t%is inte"ration %as a dramatic influence on t%e structure of participatin" companies to
full1 inte"rate t%eir suppl1 c%ains. customer ma1 seemin"l1 'e orderin" from one
supplier0 for e/ample0 ma?on.com0 4%en in actualit1 it is orderin" from one of man1
#irtual 'oo!stores t%at is independentl1 o4ned and operated and t%at seamlessl1
interfaces 4it% ma?on.com.
ICDT #usiness str"te-/ model
model de#eloped '1 l'ert n"e%rn0 called t%e Information0
Communication0 *ransaction0 and 8istri'ution -IC8*. model0 is used as a 'asis for
discussin" t%e Internet strate"1 of 'usinesses.
Ta#es
"rivacy
Encryption
virtual information $irtual
Communication
Space
space
$irtual
$irtual
Transaction space %istribution
space
Transaction
al Mar&et
Space
'E()' )*% SE'+-RE(U')TOR,
E*$IRO*ME*T
*%e e/panded IC8* Model
n"e%rnCs model is 'ased on four #irtual spaces:
- ;irtual Information $pace: *%is space is 4%ere a firm displa1s information
a'out t%eir or"ani?ation0 products0 or ser#ices. *%is is t%e first step ta!en
to4ards enterin" t%e #irtual mar!etplace. Dor electronic commerce0 ma:or
concerns are:
o *%e information t%at is displa1ed is accurate and current
o *%e information t%at is displa1ed is onl1 #ie4ed '1 aut%ori?ed users
o Customers can easil1 find t%e site and na#i"ate t%rou"% it once t%e1
%a#e reac%ed t%e site
o *%e site is accessi'le 4it%out lon" 4ait times.
- ;irtual distri'ution space: *%is space is used to deli#er t%e product or
ser#ices re2uested or purc%ased '1 t%e consumer. Dor electronic
commerce0 ma:or concerns are:
o 8eli#er1 of products and ser#ices onl1 to le"itimate0 appro#ed
customers7 and
o 9elia'le deli#er1 of products and ser#ices.
- ;irtual transaction space: *%is is used to initiate and e/ecute 'usiness
transactions0 suc% as sales orders. Dor t%ose firms enterin" t%e #irtual
transaction space0 t%e ma:or concerns are:
o $ecurit1 o#er data
o ccurac1 and inte"rit1 of processin" met%ods
o 9elia'ilit1 of #endor
o 9eputa'ilit1 of tradin" partner7 and
o Pri#ac1 concerns '1 customers.
- ;irtual communication space: *%is space is used to ena'le relations%ip
'uildin"0 ne"otiation0 and e/c%an"e of ideas suc% as forums0 c%at rooms0
and #irtual communities.
Businesses0 in determinin" t%eir Internet strate"10 need to first determine t%eir
o#erall 'usiness strate"1 and t%en determine %o4 t%e Internet can %elp t%em ac%ie#e
t%eir 'usiness strate"1. n"e%rnCs model is useful for determinin" 4%ic% #irtual
space-s. is -are. appropriate for 'ot% t%e lon" and s%ort-term ac%ie#ement of a firmCs
'usiness strate"1.
Dirms do face constraints0 %o4e#er0 and t%e decision 4%et%er to en"a"e in and
%o4 to implement a particular Internet strate"1 needs to 'e made 4it% consideration
"i#en to t%e constraints. *%ree ma:or le"al=re"ulator1 constraints faced '1 'usinesses
en"a"in" in electronic commerce are ta/ation0 pri#ac10 and encr1ption.
T.e t.ree +ill"rs of electronic commerce
not%er electronic 'usiness model t%at 'uilds on traditional mar!et spaces is
t%e t%ree pillars of electronic commerce model '1 Peter Din"ar.
Open mar&et
processes
*%ree pillars of Electronic Commerce
t t%e foundation of t%e model is t%e e/istin" mar!et space. *%ree electronic
pillars support open mar!et processes: electronic information0 electronic relations%ips0
and electronic transactions. *%us0 t%is model 'uilds on t%e e/istin" mar!et space and
utili?e electronic mec%anisms as an ena'ler of supportin" open mar!et processes.
*%e first pillar0 electronic information0 is similar to n"e%rnCs #irtual
information space. 333 is #ie4ed as a 5"lo'al repositor16 of documents and
multimedia data. *%e c%allen"e is to construct a "ood0 solid pillar t%at 4ill not
crum'le0 or in 333 terms0 t%e 4e' pa"e does not free?e-up or lin!s do not lead t%e
#isitor to a dead-end or %a#in" t%em 4anderin" t%rou"% a ma?e of lin!s 4it%out easil1
findin" t%e necessar1 information. $earc% en"ines and ot%er intelli"ent a"ents are
increasin" in popularit1 to assist users to more efficientl1 and effecti#el1 na#i"ate t%e
333.
*%e second pillar0 electronic relations%ips0 is t%e central pillar0 and is similar to
n"e%rnCs #irtual communication space. Ee electronic relations%ips pillar is a'out
'uildin" a site t%at %as t%e feelin" of 'ein" a 5port of entr16 into a communit1. In
order to attract users o#er and o#er a"ain to a site -4%ic% also means a4a1 from ot%er
sites.m t%e site needs to %a#e certain features7 it must:
- Be inno#ati#e
- dd #alue
- Pro#ide information and interaction not ot%er4ise a#aila'le7 and
- Create forums for opinion-'uildin" acti#ities.
*%e t%ird pillar is t%e electronic transaction pillar. *%is pillar is similar to
n"e%rnCs #irtual transaction space0 and also encompasses n"e%rnCs #irtual
distri'ution space. *4o impediments to constructin" t%e pillar e/ist: t%e a'ilit1 to
en"a"e in meanin"ful and sufficient ne"otiation processes and securit1 of transaction
data.
1..1. Entert"inment
Introduction: Entertainment is an action0 e#ent or acti#it1 t%at aims to entertain0
amuse and interest an audience. *%e audience ma1 %a#e a passi#e role0 as in t%e case
of persons 4atc%in" pla1 or opera0 a tele#ision s%o4 or a mo#ie0 or acti#e0 as in t%e
case of a #ideo "ame. Dor entertainment "enerall1 it re2uires t%at t%e supplier of t%e
s%o4 is #isi'le to t%e #ie4er0 4it% t%e e/ception of #ideo "ames. Entertainment can
attract an audience and influence t%eir actions and t%ou"%ts. Entertainment ma1 also
pro#ide fun0 en:o1ment and lau"%ter. *%e industr1 t%at pro#ides entertainment is
called t%e entertainment industr1. *%ere are man1 forms of entertainment0 includin"
E#istin mar&et space
Electronic
informatio
n
Electronic
relationshi
ps
Electronic
transactions
cinemas0 t%eatre0 sports0 "ames and social dance. Puppets0 clo4ns0 and cartoons tend
to appeal to c%ildren0 t%ou"% man1 adults ma1 also find t%em en:o1a'le.
Internet and e-commerce 'usiness is uni2ue. 3e %a#e attorne1s dedicated to
representin" clients in#ol#ed 4it% conductin" commercial transactions #ia t%e
Internet.
Entertainment and Multimedia: Multimedia entities and entertainment
professionals re2uire le"al "uidance in intellectual propert10 financin"0 corporate
structure0 ta/ and economic de#elopment incenti#es0 liti"ation0 emplo1ment and ot%er
speciali?ed areas. )ur attorne1s %a#e a ran"e of tec%nical0 anal1tical0 creati#e s!ills
t%at are focused in t%ese areas. *%e1 %a#e national and international e/perience 4it%
music0 film0 sports0 pu'lis%in" and ot%er media t%at includes representin" artists and
at%letes as 4ell as leadin" multimedia and entertainment producers and professional
sports team or"ani?ations.
Dorms of Entertainment:
a. nimation: nimation is t%e rapid displa1 of a se2uence of ima"es to create an
illusion of mo#ement. *%e most common met%od of presentin" animation is as
a motion picture or #ideo pro"ram0 alt%ou"% t%ere are ot%er met%ods. *%is
t1pe of presentation is usuall1 accomplis%ed 4it% a camera and a pro:ector or
a computer #ie4in" screen 4%ic% can rapidl1 c1cle t%rou"% ima"es in a
se2uence.
'. Li#e entertainment: Most entertainment e/pects or re2uires an audience to 'e
passi#e. $uc% entertainment ma1 include 4atc%in" a film or t%eatrical
production and ot%er li#e performance suc% as circus0 pla1s0 musicals 4%ic%
pro#ide cinematic and t%eatre entertainment.
c. Comed1: dramatic composition0 or representation of a 'ri"%t and amusin"
c%aracter0 'ased upon t%e foi'les of indi#iduals0 t%e manners of societ10 or t%e
ludicrous e#ents or accidents of life7 a pla1 in 4%ic% mirt% predominates and
t%e termination of t%e plot is %app10 opposed to tra"ed1.
d. Comics: comic denotes a %1'rid medium %a#in" #er'al side of its
#oca'ular1 ti"%tl1 tied to its #isual side in order to con#e1 narrati#e or
information. *%e se2uential nature of t%e pictures0 and t%e predominance of
pictures o#er 4ords0 distin"uis%es comics from picture 'oo!s. Comics contain
te/t and dra4in"s t%at con#e1 an entertainin" narrati#e. $e#eral famous
comics re#ol#e around super%eroes suc% as superman and Batman.
e. 8ance and Music: Man1 people find in#ol#ement in social dance to 'e
entertainin" and man1 listen to or 4atc% musical entertainment.
f. >ames: >ames pro#ide rela/ation and di#ersion. >ames ma1 'e pla1ed '1 one
person for t%eir 4on entertainment0 or '1 a "roup of people. >ames ma1 'e
pla1ed of ac%ie#ement or mone1 suc% as "am'lin" or 'in"o. 9acin"0 c%ess or
c%ec!ers ma1 de#elop p%1sical or mental pro4ess. E2uipment ma1 'e
necessar1 to pla1 t%e "ame suc% as a dec! of cards for card "ames0 or a 'oard
and mar!ers for 'oard "ames suc% as Monopol1.
1... E%M"r0etin-
Mar!etin" is t%e mana"ement process responsi'le for identif1in" anticipatin" and
satisf1in" customer re2uirements profita'ilit1.
E-Mar!etin" is t%e use of information tec%nolo"1 in t%e processes of creatin"0
communicatin"0 and deli#erin" #alue to customers0 and for mana"in" customer
relations%ips in 4a1s t%at 'enefit t%e or"ani?ation and its sta!e%olders. Its one part of
an or"ani?ationCs e-'usiness acti#ities.
In simple 4ords e-mar!etin" is:
- Internet or online mar!etin"
- Mar!etin" a 'rand on t%e internet
- 8istri'utin" information
- Promotin" an or"ani?ation.
Electronic mar!etin" is all t%e online or electronic 'ased acti#ities t%at facilitate
manufacturin" "oods and ser#ices '1 t%e producer to satisf1 t%e 4ants and needs of
t%e consumer. Electronic mar!etin" resources are t%ose tec%nolo"ical or electronic
mar!etin" tools t%at are used to complete t%e mar!etin" directi#es.
E-mar!etin" can identif10 anticipate and satisf1 customer needs efficientl1. It can
- Identif1 needs from customers comments0 en2uiries0 re2uests and
complains solicited #ia t%e 4e' sites email facilit10 'ulletin 'oards0 c%at
rooms and sales patterns and o'ser#in" ne4 customer "roupin"s identified
'1 data minin" t%rou"% customer data0 sales and interests.
- nticipate customer needs '1 as!in" customer 2uestions and en"a"in"
t%em in d1namic dialo"ue 'uilt on trust.
- $atisf1 needs 4it% prompt responses0 punctual deli#eries0 order status
updates0 %elpful reminders after sales ser#ices and added #alue ser#ices
com'ined 4it% d1namic dialo"ue.
- >ro4t% in sales t%rou"% 4ider distri'ution0 promotion.
- dd #alue '1 "i#in" e/tra 'enefit online.
- >et closer to customers '1 trac!in" t%em0 as!in" t%em 2uestions0 creatin"
a dialo"ue0 learnin" a'out t%em.
- $a#e costs of ser#ice0 promotions0 sales transactions and administration0
printin" and postin"0 and so increase profits in transactions.
- E/tend t%e 'rand online0 reinforce 'rand #alues totall1 ne4 medium.
- 9eduction in costs t%rou"% automation and use of electronic media.
- Daster response to 'ot% mar!eters and t%e end user.
- Increased a'ilit1 to measure and collect data.
- )pens t%e possi'ilit1 to a mar!et t%rou"% personali?ation.
- Increased interacti#it1.
8isad#anta"es of e-mar!etin"
- 8ependa'ilit1 on tec%nolo"1
- $ecurit1 and pri#ac1 issues are not #er1 clear
- Maintenance costs due to a constantl1 e#ol#in" en#ironment are %i"%
- Ei"%er transparenc1 of pricin" leads to increased price competition
- 3orld4ide competition t%rou"% "lo'ali?ation.
E-Mar!etin" Met%ods
- $earc% en"ine mar!etin"
- 8ispla1 ad#ertisin"
- E-mail mar!etin"
- Interacti#e mar!etin"
- Blo" mar!etin"
- ;iral mar!etin".
1..$. E%Ad,ertisin-
)nline ad#ertisin" is a form of promotion t%at uses t%e internet and 3orld
3ide 3e' to deli#er mar!etin" messa"es to attract customers.
E/amples of online or e-ad#ertisin" include conte/tual ads on searc% en"ine results
pa"es0 'anner ads0 'lo"s0 ric% media ad#ertisements0 social media ad#ertisin"0 online
classified ad#ertisin"0 ad#ertisin" net4or!s and e-mail mar!etin"0 includin" e-mail
spam. Man1 of t%ese t1pes of ads are deli#ered '1 an ad ser#er.
3%ile traditional offline ad#ertisin" is used '1 man1 companies to dri#e
customers to t%eir 4e'sites0 man1 'usinesses are tr1in" online ads suc% as 'anners0
pa1-per-clic! ads0 pa1-per-call ads and pop ups. Man1 'usinesses tr1 online ads in e-
ne4sletters0 on compati'le 4e'sites0 on searc% en"ines and in online #ersions of
ne4spapers and ma"a?ines as a 4a1 of reac%in" people 4%o use t%e internet for
s%oppin" or to "at%er information.
3%ile online ad#ertisin" is still ne4 to man10 t%e same desi"n and content
re2uirements and "uidelines translate 4ell from traditional ad#ertisin" to online ads.
In fact0 our ne4spaper print ads can simpl1 'e duplicated in t%e online #ersion of t%e
pu'lication. Colour0 fonts0 t%e si?e of t%e ads and messa"es 4ill all pla1 t%e same
critical role in "ettin" ads noticed and more important0 responded to.
d#anta"es of online ad#ertisin" 4%en compared to t%e traditional offline
ad#ertisin":
1. 3ider co#era"e
2. *ar"eted audiences: )nline ad#ertisin" al4a1s %elp t%e 'usiness reac% t%e tar"eted
audience. *%is %elps in ma!in" t%e campai"n more profita'le and "ettin" more
rele#ant leads.
3. fforda'le
4. Eas1 to trac! and measure con#ersion: lot of effecti#e anal1tical tools are
a#aila'le to measure online ad#ertisement campai"ns 4%ic% %elps in more
impro#isation of t%e ads.
5. $peed: E-ad#ertisin" is muc% faster t%an offline ad#ertisin" and 'usinesses can
send ads to a 4ider audience0 t%e moment t%e1 start t%eir ad#ertisin" campai"n.
&. Information: In online ad#ertisin"0 t%e ad#ertiser is a'le to con#e1 more details
a'out t%e ad#ertisement to t%e audience and t%at too at relati#el1 lo4 cost. Most of
t%e online ad#ertisin" campai"ns are composed of a clic!a'le lin! to a specific
landin" pa"e0 4%ere users "et more information a'out t%e product mentioned in
t%e ad.
(. Dle/i'le pa1ment: In online ad#ertisin" t%ere is t%e fle/i'ilit1 of pa1in" for onl1
2ualified leads0 clic!s or impressions.
+. Better 'randin": )nline ad#ertisin" stands a notc% %i"% in impro#in" t%e 'randin"
of 1our compan10 ser#ice or product.
8isad#anta"es of Internet d#ertisin"
$cope: Internet ad#ertisin" is still in its infanc1 and is a limited mar!et. lt%ou"%
increasin" num'er of people are 'ecomin" tec%-sa##1 and a#ailin" t%e 4e' for t%eir
'enefit0 t%e a#era"e customers are still seen to #ote for t%e traditional forms of
ad#ertisin".
dditional costs: Asuall1 one %ires a professional0 'e it a freelancer or some compan1
to desi"n %is site and to strate"icall1 ad#ertise t%e concerned product or ser#ice. *%is
adds to t%e additional cost. lt%ou"% it can 'e 'eneficial in t%e lon" run if 1our
internet ad#ertisement is successful and t%e product sells0 one can suffer %u"e loss it is
not so.
d#ertisin" o#erload: )ne ma:or pro'lem 4it% internet ad#ertisin" is t%e cluttered
#ie4 of a 4e' pa"e. E#er1 ad#ertiser %as a competiti#e ed"e and 4ants to "ra' t%e
attention of e#er1 consumer0 'ut 4it% so muc% information on t%e platter at a time0 it
is impossi'le to di"est so muc% and t%e consumer in turn i"nores most of t%e
ad#ertisements0 resultin" in lo4 rates of return.
1..). 'e"rc. En-ines
3e' searc% en"ines ta!e user-defined strin"s and Boolean e/pressions0 -suc% as <8
and )9. and return a list of closel1 matc%ed 4e' sites in t%e order of t%e closeness of
matc%. *%e searc% en"ines periodicall1 5cra4l6 t%rou"% t%e Internet loo!in" for ne4
pa"es and update t%eir e/istin" data'ases. *%e fre2uenc1 4it% 4%ic% t%ese en"ines
perform updates and t%e ran"e of t%eir cra4l -t%e num'er of locations e/amined.
affects t%e num'er of sites inde/ed and t%e currenc1 of t%e sites listed.
3%en desi"nin" a 4e' pa"e0 certain features can increase a siteCs %it rates and
ran!in". Anderstandin" 4%at t%ese terms mean and %o4 to desi"n a site 4it% t%em in
mind is important. Eit rates are t%e num'er of matc%es found 'et4een user re2uests
and a 4e' site0 4%ile ran!in" is t%e assi"ned rele#anc1 score "i#en '1 t%e searc%
en"ine. *%is score directl1 affects t%e order of t%e listin" of a site rele#ant to ot%er
sites meetin" t%e criteria. *%e furt%er do4n t%e list t%e site is located0 t%e less li!el1
t%e user 4ill find t%e site. If t%e1 cannot find t%e site0 t%e1 cannot #isit itF Eac% searc%
en"ine 4or!s a little 'it differentl1 and t%at is 4%1 different searc% en"ines 1ield
sli"%tl1 different results.
*%ree common E1perte/t Mar!up Lan"ua"e -E*ML. ta"s are used to affect a siteCs
ran!in". *%e !e14ord ta" is used to identif1 !e1 4ords for searc% en"ines t%at use
t%is information. *%e description ta" is t%e 'od1 of te/t t%at is returned '1 t%e searc%
en"ine to descri'e t%e contents of t%e 4e' site and ma1 'e used for ran!in" as 4ell.
*%e title ta" is t1picall1 returned at t%e top of t%e listin" returned '1 t%e searc% en"ine
and also ma1 'e used for ran!in".
$ome searc% en"ines consider a 4ord to 'e #er1 important for t%at site and t%us cause
its ratin" to 'e %i"% for searc%es usin" t%at 4ord if it is repeated fre2uentl1 t%rou"%out
t%e pa"e. Caution must 'e e/ercised0 %o4e#er0 'ecause some 4e' site desi"ners %a#e
a'used t%is feature and caused searc% en"ine desi"ners to ta!e t%is a'use into account.
*%ese a'use are called searc% en"ine spammin" and can 'e accomplis%ed in a num'er
of 4a1s. )ne 4a1 is to repeatedl1 list t%e 4ord consecuti#el10 time after time0 in t%e
!e14ords section.
not%er met%od of searc% en"ine spammin" is to repeat a 4ord all o#er t%e pa"e
usin" t%e same colour te/t as t%e 'ac!"round so t%e #isitor 4ill not see t%e 4ord0 'ut
t%e searc% en"ine 4ill. *%is t1pe of acti#it1 is "enerall1 not re4arded an1 lon"er and
can result in t%e site 'ein" dropped from t%e inde/es or se#erel1 do4n"raded in its
rele#anc1 ran!in".
$ome searc% en"ines0 suc% as Infosee! and EotBot place 4ei"%t on searc% 4ords t%at
are found in t%e E*ML !e14ord and meta ta"s. $ometimes more importance is "i#en
to 4ords in t%e title ta" t%an t%e !e14ord or description ta".
Location of 4ords: t%e "eneral rule is to place important 4ords as close to t%e top of
t%e pa"e as possi'le.
Lin! popularit1: $ome searc% en"ines0 suc% as E/cite0 place importance on t%e
num'er of lin!s to t%e site. *%e lo"ic is t%e site is pro'a'l1 a "ood site if lin!s to it are
made from ot%er sites. )ne strate"1 to impro#e t%is t1pe of ratin" is to enter into
reciprocal lin!in" a"reements 4it% ot%er sites.
9e#ie4ed sites: Man1 searc% en"ine sites perform re#ie4s of sites0 and t%e sites t%e1
re#ie4 are sometimes ran!ed a'o#e non-re#ie4ed sites. *%e lo"ic is t%at if t%e site
4as "ood enou"% or attention-"ettin" enou"% to re#ie40 it must 'e more rele#ant.
Case sensiti#e: $ome searc% en"ines0 suc% as lta ;ista and Infosee! are case
sensiti#e0 so repetition of 4ords 4it% multiple #ariations of case ma1 'e useful. $ince
Infosee! places 4ei"%t 'ased on meta ta"s0 amon" ot%er t%in"s0 #ariations in t%e
!e14ords ma1 'e useful.
1..*. E%B"n0in-
Electronic 'an!in" is defined as t%e automated deli#er1 of ne4 and traditional
'an!in" products and ser#ices directl1 to customers t%rou"% electronic0 interacti#e
communication c%annels.
*4o approac%es E-'an!in":
1 8ial-in pproac%:
9e2uires users to %a#e a separate finance soft4are0 so t%at t%e1 can do all t%e
process offline and connect to t%e 'an! :ust for transactions.
2 Internet pproac%:
Asers directl1 lo" on to t%eir 'an! 4e'site and complete all t%eir 4or! online.
E% B"n0in- de,ices(
• Personal computers -PCs.0
• Personal di"ital assistants -P8s.0
• utomated teller mac%ines -*Ms.0 Gios!s0
• *ouc% tone telep%ones0
• Cellular and smart p%ones
Benefit of E%B"n0in-(
• n1time 'an!in" 0and an14%ere 'an!in"
• )nline Ban!in" is muc% c%eaper for t%e 'an!. sur#e1 sa1s t%at )nline
Ban!in" costs onl1 1HI of 'ranc% ser#ices
• 9eduction in cost of transaction
• Pa1 'ills online t%ere '1 sa#in" postal ser#ices.
• Eas1 to ma!e utilit1 pa1ment
• )nline purc%ases
• *%e ser#ices are a#aila'le se#en da1s a 4ee!0 24 %ours a da1.
Dr"1#"c0 of E%#"n0in-(
• - 8ifficult in adoption tec%nolo"1
• - Dear of tec%nolo"1
• - Ei"% cost of tec%nolo"1
• - Lac! of preparedness
• - 9estriction on usa"e of tec%nolo"1
2ireless #"n0in-(
• 3ireless 'an!in" is "ainin" popularit1.
• 3it% a p%one num'er and a special PI< num'er a customer %as access to %is account
'alance from %is cellular de#ice.
• llo4s user to pa1 'ills0 transfer funds 'et4een accounts and c%ec! accounts from
an14%ere.
• Ban!s li!e Jes!K spoLitelna0 M-'an!0 C$)B 'an! offers 4ireless 'an!in" in C?ec%
9epu'lic.
• $ecurit1 is an important issue in 3ireless Ban!in".
• <e4s'1tes reports t%at 4ireless 'an!in" users 4ill num'er o#er 5H million in t%e A$
'1 2H12 and in Europe almost (H million.
'ecurit/ fe"tures(
• $ecurit1 is a primar1 concern in internet 'an!in"
• $$L -$ecure $oc!ets La1er. protocol is used to ensure data securit1 'et4een
customerCs 'ro4ser and 4e' ser#er.
• $$L pro#ides data encr1ption0 data inte"rit1 and ser#er aut%entication.
• 512 'it data encr1ption.
• Customer data'ase is protected '1 dou'le fire4alls.
'im+le s"fet/ me"sures(
• C%an"e 1our pass4ord periodicall1.
• 9e#ie4 1our 'an! accounts fre2uentl1.
• *r1 to use lo4 limit credit card for internet transactions
Conclusion(
• *%e strate"1 of 'an! is to pro#ide #alue added ser#ices and products to t%e customers0
Atili?in" t%e internet e/tensi#el1.
• *%e main aim of e-'an!in" is to ma!in" transactions t%rou"% online poses and ma!e
costumer more 'eneficial.
1..3. Mo#ile%Commerce
M-commerce is t%e 'u1in" and sellin" of "oods and ser#ices t%rou"% 4ireless
%and%eld de#ices. MorN
M-Commerce is t%e process of pa1in" for ser#ices usin" a mo'ile p%one or personal
or"ani?er. MorN
M-Commerce is t%e use of mo'ile de#ices to communicate0 inform transact and
entertain usin" te/t and data #ia a connection to pu'lic and pri#ate net4or!s.
M-commerce is t%e a'ilit1 to conduct commerce usin" a mo'ile de#ice suc% as
Mo'ile p%one0 Personal di"ital assistant -P8.0 $martp%one.
M%commerce #enefit(
-*%e Internet offerin"s are easier and more con#enient to access.
- 3e "et considera'le fle/i'ilit1 4%ile conductin" 'usiness.
- *ransaction and personnel costs are reduced due to 4idespread automation of 'ac!-
office operations.
- Dield staff is more effecti#e as t%e1 %a#e fle/i'le access to 'ac!-office data.
- Dor a small 'usiness could 'enefit from m-commerce '1 sellin" a product or ser#ice
and impro#in" producti#it1.
Attri#utes of M%Commerce
- A'i2uit1
- Con#enience
- Interacti#it1
- Personali?ation
- Locali?ation
M%Commerce 'er,ices "nd A++lic"tions ","il"#le "re(
- Mo'ile tic!etin"
- Content purc%ase and deli#er1
- Information ser#ices
- Mo'ile 'an!in"
- Mo'ile Bro4sin"
- uctions
- Mo'ile Purc%ase
- Mo'ile mar!etin" and ad#ertisin"
Mo#ile tic0etin-( *ic!ets can 'e sent to mo'ile p%ones usin" a #ariet1 of
tec%nolo"ies. Asers are t%en a'le to use t%eir tic!ets immediatel10 '1 presentin" t%eir
p%ones at t%e #enue. *ic!ets can 'e 'oo!ed and cancelled on t%e mo'ile de#ice 4it%
t%e %elp of simple application do4nloads.
Content +urc."se "nd deli,er/( Mo'ile content purc%ase and deli#er1 mainl1
consists of t%e sale of rin"-tones0 4allpapers0 and "ames for mo'ile p%ones. *%e
con#er"ence of mo'ile p%ones0 porta'le audio pla1ers0 and #ideo pla1ers into a sin"le
de#ice is increasin" t%e purc%ase and deli#er1 of full-len"t% music trac!s and #ideo.
Inform"tion ser,ices( <e4s0 $toc! 2uotes0 $ports scores0 Dinancial records0 *raffic
reportin"0 and muc% ot%er information is a#aila'le on Mo'ile de#ices 4it% minimum
costs.
Mo'ile 'an!in" -M-Ban!in".: Ban!s and ot%er financial institutions use mo'ile
commerce to allo4 t%eir customers to access account information and ma!e
transactions0 suc% as purc%asin" stoc!s0 remittin" mone1.
Mo#ile Bro1sin-( Asin" a mo'ile 'ro4serOi.e.0 a 3orld 3ide 3e' 'ro4ser on a
mo'ile de#iceOcustomers can s%op online.
Mo'ile purc%ase: $ome merc%ants pro#ide mo'ile 4e'sites t%at are customi?ed for
t%e smaller screen and limited user interface of a mo'ile de#ice.
Mo#ile m"r0etin- "nd "d,ertisin-( Companies %a#e reported t%at t%e1 see 'etter
response from mo'ile mar!etin" campai"ns t%an from traditional campai"ns.
Mo'ile pa1ment: Is an alternati#e pa1ment met%od. Instead of pa1in" 4it% cas%0
c%e2ue or credit cards0 a consumer can use a mo'ile p%one to pa1 for a 4ide ran"e of
ser#ices and di"ital or %ard "oods suc% as:
– Music0 #ideos0 rin"tones0 online "ame
– *ransportation fare -'us0 su'4a1 or train.
– Boo!s0 ma"a?ines0 tic!ets
M%Commerce C."llen-es (
-$lo4 data transfer speeds on second-"eneration cellular net4or!s0 resultin" in %i"%er
costs to customer
-More 3e' sites need to 'e desi"ned specificall1 for small 4ireless de#ices.
-Ge1'oards and screens on cell p%ones are still tin1 and a4!4ard to use.
Limited memor10 po4er supplies0 small screen si?e.
1..4. Online Tr"din-
8efinition: *%e act of placin" 'u1=sell orders for financial securities and=or
currencies 4it% t%e use of a 'ro!era"eCs internet-'ased proprietar1 tradin" platforms.
*%e use of online tradin" increased dramaticall1 in t%e mid to late P,Hs 4it% t%e
introduction of afforda'le %i"%-speed computers and internet connections. $toc!s0
'onds0 options0 futures and currencies can all 'e traded online.
*%e use of online trades %as increased t%e num'er of discount 'ro!era"es
'ecause internet tradin" allo4s man1 'ro!ers to furt%er cut costs and part of t%e
sa#in"s can 'e passed on to customers in t%e form of lo4er commissions. not%er
'enefit of online tradin" is t%e impro#ement in t%e speed of 4%ic% transactions can 'e
e/ecuted and settled0 'ecause t%ere is no need for paper-'ased documents to 'e
copied0 filed and entered into an electronic format.
3%ile 4e ma1 'e e/cited a'out in#estin"0 man1 of us a#oid "ettin" into it
'ecause of t%e %assles in#ol#ed. )ne is daunted '1 t%e prospect of maintainin" 'an!
accounts0 ma!in" endless calls to "at%er information0 lac! of tools and ad#ice and :ust
t%e delu"e of paper4or! and most importantl10 t%e lac! of time to plan and !eepin" a
s1stematic trac! of 1our portfolio.
Dortunatel10 %elp is at %and t%rou"% t%e online in#estin" platforms t%at are
a#aila'le to in#estors. *oda1 tec%nolo"1 ena'les 1ou to completel1 plan 1our
in#estin" needs in t%e comfort of 1our %ome and at t%e time 1ou li!e0 all at t%e clic!
of t%e mouse.
9e2uirement: ll 4e need is a computer0 net connection and a su'scription to a 3 in 1
online in#estin" account 4it% an1 of suc% ser#ice pro#iders. *%e list of some ser#ice
pro#iders are $%areG%an0 ICICIdirect.com0 Gota!securities.
Online tr"din- "d,"nt"-es
-It pro#ides a 4ealt% of information0 anal1sis and tools t%at ena'le 1ou to ta!e more
informed decisions0 #irtuall1 no paper4or! in#ol#ed as all transaction records are
online and statements a#aila'le in di"ital form0 in#est an1time and from an14%ere at
1our time and con#enience
-It allo4s 1ou to in#est across different asset classes li!e e2uit1 s%ares0 mutual funds
and ot%ers. Qou can also "et up-to-date information and anal1sis in an in#estor
friendl1 format0 from some of t%e 'est information pro#iders in t%eir respecti#e fields.
$afet1 measures online clients must o'ser#e
-#oid placin" order from t%e s%ared PCCs or t%rou"% c1'er cafes.
-Lo" out after %a#in" finis%ed tradin" to a#oid misuse.
-Ensure t%at0 one does not clic! on 5remem'er me6 option 4%ile si"nin" on from non
re"ular location.
-8o not lea#e t%e terminal unattended 4%ile one is 5si"ned-on6 to t%e tradin" s1stem.
-Protect 1our personal computer a"ainst #iruses '1 placin" fire4all and an anti-#irus
solution.
-Qou s%ould not open email attac%ments from people 1ou do not !no4.
1..5. E%Le"rnin-
Introduction
E-learning is the use of t%e Internet and related tec%nolo"ies for t%e de#elopment0
distri'ution and en%ancement of learnin" resources.
It pro#ides students and professional 4it% s!ills for career ad#ancement0 ena'lin"
'us1 people to learn ne4 tec%nolo"ies
E/perts 'elie#e it to 'e t%e fastest "ro4in" education industr10 e/pectin" it to dou'le.
E-Learnin" *ec%nolo"ies and Infrastructure
B ;ideo-conferencin" tec%nolo"1
B $treamin" audio and #ideo
B 9edundant stora"e space
B Ei"%-'and4idt% re2uired to 'roadcast courses o#er t%e 3e'
B Computer-based-training (CBT.
R Interacti#e educational soft4are presented on flopp1 dis!s and C8s
R llo4s students to ta!e a self-paced course in an1 num'er of su':ects
R $ince no do4nloadin" is necessar10 'and4idt% is not a concern 4it% CB*
courses
B 3e'-'ased-trainin" de#elopers must consider t%at t%eir courses 4ill 'e used on
#ar1in" operatin" s1stems and platforms
B Cross-platform
R Products are accessi'le '1 man1 different operatin" s1stems
B Asynchronous courses
R Can 'e ta!en an1 time0 are self-paced and 4ill not %a#e t%e 'enefit of a li#e
instructor
R Courses must minimi?e student confusion '1 pro#idin" a 'asic interface and
clear0 concise content
R $tudents s%ould %a#e t%e a'ilit1 to communicate 4it% eac% ot%er usin" c%at
pro"rams and messa"e 'oards
B $tora"e space is a ma:or concern for e-learnin" #endors
R Eac% course re2uires a data'ase of information t%at can 'e do4nloaded '1 t%e
students
R udio and #ideo re2uire additional ser#er space
B Synchronous courses
R )ccurrin" in real time
R udio and #ideo 4it% li#e instructors 4ill re2uire e#en more resources to
ensure t%at s1stems function properl1 4%en t%e courses are deli#ered
B Learning Management Systems (LMS)
R data'ase 4%ic% can 'e accessed '1 emplo1ees and students0 pro#idin"
course outlines0 e/planations0 pre-re2uisite information and courses
B )pponents of e-learnin"
R Dear of an increase in t%e di"ital di#ide
R Cop1ri"%t infrin"ement
R )nline learnin" reduces social interaction amon" c%ildren
R Lac! t%e sociali?ation aspects of a traditional education
R 3e'-'ased trainin" is not al4a1s desi"ned '1 s!illed educators
1..6. Online%'.o++in-
8efinition: *%e act of purc%asin" products or ser#ices o#er t%e Internet. )nline
s%oppin" %as "ro4n in popularit1 o#er t%e 1ears0 mainl1 'ecause people find it
con#enient and eas1 to 'ar"ain s%op from t%e comfort of t%eir %ome or office. )ne of
t%e most enticin" factor a'out online s%oppin" 0 particularl1 durin" a %olida1 season 0
is0 it alle#iates t%e need to 4ait in lon" lines or searc% from store to store to store for a
particular item.
*%ere %as 'een a #ast increase in t%e #ariet1 of products t%at are a#aila'le online for
t%e s%oppers to 'u1. 3it% :ust a clic! of t%e mouse0 s%oppers can 'u1 nearl1 an1
product online i.e.0 from "roceries to cars0 from insurance policies to %ome loans. *%e
4orld of electronic commerce ena'les consumers to s%op at t%ousands of online stores
and pa1 for t%eir purc%ases 4it%out lea#in" t%e comfort of %ome.
!rec"utions to t"0e 1.ile online s.o++in-
-$%op at $ecure 3e' $ites
-9esearc% t%e 4e' site 'efore 1ou order
-9ead t%e 4e' siteCs pri#ac1 and securit1 policies
-<e#er "i#e out 1our social securit1 num'er
-8isclose onl1 t%e 'are facts 4%en 1ou order
-Geep t%e pass4ord pri#ate
-l4a1s print or sa#e copies of 1our orders
-Pa1 attention to s%ippin" facts
-Be cautious 4it% electronic si"natures
-Gno4 %o4 online auctions operate
-Be a4are of d1namic pricin"
Ad,"nt"-es of online s.o++in-
a. Con#enient: Con#enience includes t%e o#erall ease of findin" a product0 time
spent on s%oppin"0 minimi?ation of o#erall s%oppin" effort.
'. <o need for #endors and no pressure to 'u1: )nline s%oppin" 'enefits 'ot% t%e
societ1 as a 4%ole and indi#iduals. *%e societ1 can sa#e %uman resources 4%en
consumers %elp t%emsel#es '1 'ro4sin" freel1 online instead of as!in" for
assistance from #endors.
c. Infinite s%elf space a#aila'le: Consumers desire a #ariet1 of products 'ecause t%e1
loo! for t%e ri"%t product t%at 4ill full1 satisf1 t%em. *%ere is infinite #ariet1 of
products a#aila'le online 'ecause online s%oppin" allo4s consumers to 'ro4se
t%rou"% products t%at are made all around t%e 4orld 4it%out "eo"rap%ical
'oundaries.
d. 'le to compare product price and features: 3it% t%e online tools t%at ena'le
product comparison0 consumers can compare product prices and features to ma!e
a 'etter decision 4it% less effort.
Dis"d,"nt"-es of online s.o++in-(
a. En:o1ment of retail s%oppin" is lost.
'. Pri#ac1 and securit1 issues are of concern.
c. ccess to t%e Internet and computer is necessar1.
d. Product cate"or1 ris! is related to functional products suc% as apparel0 perfume0
and electronics t%at %a#e functions t%at cannot full1 'e e/perienced online.
e. *oo man1 c%oices to decide from.